A contingent liability recognised in a business combination will be recorded:
A) in the subsidiary's accounts.
B) in the group accounts.
C) either A or B.
D) none of the above.

Question

Quizplus · Accepted Answer

In a business combination, a contingent liability is recognized in the group accounts (consolidated financial statements) to reflect the fair value of the acquired entity's liabilities at the acquisition date. This ensures that the financial position and performance of the combined entity are accurately represented.

A Contingent Liability Recognised in a Business Combination Will Be